Category: Education
Created by: SingleWriter
Number of Blossarys: 3
These are the agreements where a company can only pay a restricted amount of dividend, is not supposed to sell the senior debt first or use refunding as a tool to take new debt with low interest ...
These are bonds that have a rating that is less than BB. These bonds do come with a high yield but also have a high default risk attached to them.
Indenture basically lists the features of a bond. It consists of the par value of the bond, amount and date of issue, and maturity of the bond. It also has details regarding coupon payments and other ...
These bonds come with a floating rate of coupon payments, which means that coupon payments may vary based on the market fluctuations until the maturity. Floors and ceilings are often used to protect ...
This is a feature in a bond that allows the company to buy back the bond at a price that is decided. The period for using this provision is restricted though.
A bond, also referred to as corporate debt can be short term or long term. It is different from common stock since a bond holder has no ownership in a company. Moreover, bonds can also be callable in ...
Bond refunding is when a company replaces a bond entirely or partially. Refunded bonds usually have a really good rating some cash is kept aside for safety by the issuer of bond.